Rossari Biotech Limited which had tapped the capital markets with its simultaneous fresh issue of Rs 50 crs and an offer for sale of 1.05 cr shares was oversubscribed a whopping 79.37 times. The price band of the issue was Rs 423-425 and was open from Monday the 13th of July to Wednesday the 15th of July. Earlier the company had allotted 35.02 lac shares to 15 anchor investors comprising of 29 entities. The highest allocation of 3,29,420 shares was made to three individual investors which constituted 9.4% of the anchor allocation was made to Ashoka India, Nalanda Fund and Nippon India. Besides the above, three mutual funds HDFC, ICICI and SBI were also allotted the similar 9.4% in various schemes.

The issue was subscribed 85.26 times by QIB’s, 239.83 times by HNI’s and 7.23 times by Retail investors. There were 6,16,155 applications and on the basis of lots the Retail portion was subscribed 5.28 times.

The leveraged investor cost of funding at 7% would be Rs 136.83 while at 6.5% would be Rs 127.06. This effectively means that the base level for the share on listing day becomes Rs 552 – 562 for leveraged HNI depending on the rate of interest he has borrowed at. This effectively means a premium of 30-32% on the issue price of Rs 425. Anything less than this would bring pressure on the share as those investors who have borrowed/leveraged and applied for 17.51 lac shares out of a total issue of 116.76 lac shares would determine the movement of the share.

The full details of the subscription are given below: –